Last year, the Greenwood Annexation Committee determined that Shadow Lake and nearby rural areas are “worthy of considering for annexation,” according to annexation committee chairman Robert McKinney. The city’s Planning Commission recently approved of the proposal, which now rests with the City Council. If the council also agrees to pursue annexation, the issue could end up in voters’ hands this November.

“This resolution is for transferring $10,000 from the general fund into the planning and building department for the purposes of annexation,” Planning Director Sonny Bell said Monday.

Although the City Council approved of the funding, City Attorney Mike Hamby said the move does not obligate Greenwood to proceed with annexation.

“You can budget these costs, but just because they’re budgeted doesn’t mean you have to spend them,” he said.

McKinney told council members they need to pass an ordinance by late August if they wish to see the annexation make it onto the November election ballot. Annexation would be voted upon by both Greenwood residents and those who live in the targeted areas.

“The 26th of August, that’s the no-later-than-date the council has to have passed an ordinance if it wants to go ahead with the annexation election this year,” McKinney said. “Between now and then, you need to have three readings of that ordinance. That could be at your regular council meetings or you could do special meetings as you wish.”

McKinney added that he “strongly recommends” the council host several study sessions to review the annexation plan.

“Make sure you’re fully comfortable with this action before it gets put into writing and you have the first reading of the ordinance,” he said. “I strongly recommend you have at least one public hearing where all the people affected can come in and have their say.”

Greenwood initially took interest in Shadow Lake as part of a larger plan to explore annexation on all sides of the city. The most densely populated area is the Shadow Lake community.

Based on an estimated 120 Shadow Lake properties, Greenwood would receive an additional $24,292 in property taxes annually, according to the annexation committee. It is also estimated that Greenwood would pull in between $69,000 and $82,000 a year in additional state turnback taxes.

After losing $18,000 a year in out-of-town fees now charged for water service at Shadow Lake, the city would net about $79,000 a year, according to the committee. The city currently provides fire protection and backup police service to Shadow Lake, McKinney said.

In a state of the city address Monday, acting Mayor Jimmy Gossett touched upon annexation in his “not so little town.”

“With the construction of I-49 and the continued growth of our school system, it only makes sense to expand beyond our current city limits,” he wrote.